The use of telematics - the integration of wireless communications, vehicle monitoring systems, and location devices - is expected to reach 5.8 million units this year, with revenues growing to more than $2 billion, according to a study by C.J. Driscoll and Associates. More than 2.5 million telematic units are currently used to manage fleet vehicles, mobile workers, trailers, heavy equipment, and other assets.
Adopters of fleet telematic systems include Verizon Inc., Wal-Mart, SC Johnson, Honeywell, ValleyCrest Companies, Genuine Parts, Gem Plumbing, EasyTurf, U.S. Postal Service, Viking Termite & Pest Control, IES, and Amtec LLC. These fleets use telematic devices to continuously measure fuel consumption and fleet utilization, and monitor vehicle and performance.
A growing number of fleets are turning to vehicle recorders or GPS tracking systems as the most cost-effective tool to curb excessive idling and other fuel-inefficient driver behaviors.
For example, Genuine Parts determined its drivers were idling company trucks 2-3 hours per day - a heavy hit in terms of fuel consumption. Drivers leave a distribution center and make 12-15 stops and deliveries per evening. Why so much time spent idling? Drivers spent 15-20 minute intervals idling to maintain a comfortable cab climate, as well as save battery life, which can run low from frequent liftgate use, although a test by the company's liftgate installer determined the liftgate battery runs down after 14 cycles.
Verizon Inc. successfully reduced fuel costs by curbing unnecessary engine idling. Verizon estimates unnecessary idling costs the telecommunications company about $20 million annually. For calendar-year 2008, Verizon targeted a 3-percent reduction in the 53 million gallons of fuel used by the company's vehicles, mostly light- and medium-duty trucks. Verizon uses a combination of GPS tracking and employee education to curb unnecessary engine idling. GPS tracking systems have been installed in about 25 percent of company trucks.
Wal-Mart and SC Johnson are achieving dramatic energy savings through their green logistics programs, which include the use of telematics. In 2006 alone, Wal-Mart prevented 678,954 tons of carbon dioxide, 38 tons of nitrogen oxide, and 1,539 tons of particulate matter from entering the atmosphere through a combination of efforts, such as the installation of auxiliary power units (APUs) in diesel trucks to warm or cool the cabin on breaks.
Similarly, SC Johnson eliminated 1,882 tons of greenhouse gases, cut fuel usage by 168,000 gallons, and saved approximately $1.6 million in 2007 through its Truckload Utilization Project, which combines multiple customer orders and products in individual trucks for maximum efficiency.
Some fleets are adopting a technology-based solution to reduce fuel spend. Honeywell hopes to move forward on a telematics program to enhance fuel efficiency. "We conducted a pilot telematics program in our cargo-type vehicles," said Shelly Lofgren, fleet manager, North America for Honeywell. "The recommendation is being made to move forward and it is under review by management." ValleyCrest Companies in Calabasas, Calif., reports a 10-percent reduction in fuel costs since implementing a fleet-wide GPS system.
GPS systems have a dual purpose of tracking unauthorized travel and optimizing routes. "We have started using GPS on some of our vehicles, and with proper controls and monitoring, we have reduced excess idle time and speeding in some of our branches," said Kirk Herniman, manager, equipment & leasing for IES in Houston.
For the past seven years, Larry Gemma, owner of Gem Plumbing in Lincoln, R.I., has used telematics in his fleet of 180 GM and Ford trucks and vans to monitor mileage, location, and speed, schedule employee routing, and provide maintenance alerts.
Since implementing the program, Gemma has experienced improved efficiency and reduced fleet costs by lowering vehicle mileage and maintenance, which reduces employee downtime and extends vehicle longevity.
According to Gemma, GPS data has been used for stolen vehicle recovery and to vindicate drivers when customer complaints about time issues and accident claims prove bogus. "We immediately tell the employee about that benefit of GPS monitoring and what would have happened in that situation had we not had GPS."
Similarly, Joe Christianson, president of Plumbing Plus and Remodel Works Bath & Kitchen in Poway, Calif., said GPS verifies an employee's arrival at a location. If a client disputes the bill and says the employee was only there for a short period of time, "I can verify this and turn around and say he was there for two hours and 15 minutes. This allows us to be on the same side as our guy now because we have proof," said Christianson.
Not only does this help Christianson track his fleet of 30 service vans and pickups, the phone-based GPS system also functions as an employee timecard, automatically collecting location data. Drivers merely input the job number and code for the type of work they're doing.
"Our drivers do multiple tasks because we do kitchen and bathroom remodeling. If they're doing demolition, they put one code into the phone and if they start doing plumbing, it's a different code," Christianson said.
Management then captures the GPS location, converts it for payroll, and downloads the data into the computer, so all job costing and data collection for Workers' Compensation is done. GPS assists in back-office functions by eliminating paperwork and increases productivity since drivers can go directly to the job site without bringing in their timecards.
The fleet uses telematics software to route drivers to jobs closer to their homes. The GPS system installed in vehicles also tracks maintenance and alerts drivers when it's time for an oil change.
When introducing a fleet GPS program to employees, Christianson suggests fleet managers promote it with excitement, telling drivers the new tool will help the fleet become more efficient. They will know the problem areas, and management knows whether one of the trucks isn't operating correctly or is being abused or driven too fast, said Christianson. A bad company representative affects everyone, not only the person driving the vehicle.
David Hartman, president of EasyTurf, based in Escondido, Calif., uses telematics for tracking his fleet of 15 Chevrolet pickups. An important selling point of the Web-based program he uses was the fleet could avoid regular California smog checks because the software provider constantly checks vehicle emissions levels. Another benefit Hartman noted are regular maintenance alerts sent to the company's operations manager.
"We use GPS as a deterrent because our crew leaders take the vehicles home with them in the evenings and on weekends," said Hartman. "Generally, our crews stay in the same place all day, so we're not using it to reroute them during the course of the day. But, if they're late showing up to a job, we can look online and figure out where they are."
Employees are aware of the GPS system and are not allowed personal use of company vehicles. "We didn't do this in a stealthy way. We let everyone know that if they disconnect the system, they'll be in worse trouble than if they actually drove on the weekend," said Hartman.
Hartman suggests other fleet managers considering implementing a GPS program be forthright and inform drivers it's necessary to keep track of their equipment, and that insurance companies are increasingly mandating GPS systems.
"The last thing I would do is try to sneak it on them and not tell them about it. I know some companies that have done that and it doesn't work very well," said Hartman.
In addition to monitoring mileage, location, speed, and scheduling employee routes, telematics can also provide maintenance alerts.
Mike Lanning, president of Desert Services, located in Scottsdale, Ariz., has used telematics for vehicle tracking since 2006 because of the integration, customization, and service level provided. With 38 vehicles consisting of water trucks, street sweepers, and roll-off trucks for temporary fencing, Lanning initially was interested in monitoring maintenance and mileage. He also can track location in real-time, route drivers to a specific job, and validate an employee was at a particular job on time or used the truck after hours.
"Just from that tracking, the system pays for itself. It prevents fraud from the customer and the driver side; you can't dispute the evidence," said Lanning. "For the most part, 90 percent of our drivers are all doing the right things and they don't care. The ones who complain are up to something and they're the ones you need to watch anyway."
The system helps Desert Services save money in a number of ways, including reduced fuel costs. Drivers are efficiently routed to closest jobs and the number of trips is minimized.
The U.S. Postal Service started a GPS vehicle tracking project with a 500-unit pilot installed in the greater Chicago area. Key expectations from this project included improved route efficiency, driver safety, customer service, and reduced vehicle costs. After the pilot was completed, they purchased another 4500 units from GPS Fleet Solutions and installed them in postal vehicles all over the United States.
Viking Termite and Pest Control, a New Jersey-based pest control service, also equipped its drivers with a vehicle tracking and management solution. The solution includes a full-featured GPS device that provides accurate, real-time vehicle location and status data.
"Using a fleet management solution, we are able to utilize and capitalize our fleet better over time and offer more value to our customers," said Viking Vice President Daniel Bradbury. "Our call center can disburse the closest driver to a customer's location for faster service times."
Viking is already seeing quantifiable results with its deployment. Productivity gains have improved as much as 1.5 hours per technician.
Light Tower Rentals, a Texas-based oilfield equipment rental firm, began deploying a GPS fleet management system in its fleet of more than 100 vehicles.
The program allows Light Tower Rentals to monitor the safety and security of drivers and fleet assets in real time and also generates reports for vehicle metric analyses. Data from reports can be used to enhance the management of the company fleet and workforce - ultimately to improve customer service and verify employee work hours.
Since November 2007, Amtec LLC has used telematics daily to improve fleet vehicle management, increase vehicle utilization, efficiently route technicians, improve vehicle fuel efficiency (due to reduced consumption), increase driver/fleet safety practices, and validate vehicle locations.
"One of the biggest challenges was scheduling installation of the telematics units as our 590-unit fleet is scattered around the U.S.," said Gene Hollenbeck, corporate director, asset/risk/safety for Amtec LLC. "However, our fleet management company was extremely accommodating, which allowed us to work out an installation schedule that met our needs. Installations normally took place at our various locations either early morning or late evenings."
Amtec has realized savings in fuel expense, lowered risk, and increased productivity through more efficient routing of its mainly light-duty truck fleet.
Hollenbeck advises fleets "not to wait" to incorporate telematics into daily practices.
As you can see the benefits of GPS tracking and the ROI, are significant. If you would like to learn more about how GPS tracking can save your company money and increase your bottom line, contact us at www.gpsfleetsolutions.com or 877-467-0326.
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